The Role of Quality in Limiting a Firm's Product Liability

question 86

Multiple Choice

The role of quality in limiting a firm's product liability is illustrated by all of the following except

• A) ensuring that contaminated products such as impure foods do not reach customers.
• B) ensuring that products meet standards such as those of the Consumer Product Safety Act.
• C) designing safe products to limit possible harm to consumers.
• D) using processes that make products as safe or as durable as their design specifications call for.
• E) making it easy for customers to complain about defective products.

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Definitions:

Delaying Sales

The strategic holdback of products or services from the market for a certain period to potentially increase demand or prices.

M-form Organization

A type of business structure characterized by a divisional arrangement, where operations are grouped into semi-autonomous divisions.

Functional Organization

An organizational structure where the company is divided into departments or teams based on functions such as marketing, finance, or production.

N-form Organization

A network structure for organizing a company, emphasizing horizontal communication and collaboration across diverse units.